Report Overview

Japan Lab-grown Diamonds Market – Industry Trends & Forecast Report, 2031

Japan Lab-grown Diamonds Market size was estimated at USD 2,367.25 million in 2024. During the forecast period between 2025 and 2031, Japan Lab-grown Diamonds Market size is projected to grow at a CAGR of 8.45% reaching a value of USD 4,176.87 million by 2031. Prominent drivers of the market include ethical and environmental concerns, as lab-grown diamonds offer a sustainable and conflict-free alternative to traditionally mined diamonds. Their affordability compared to natural diamonds makes them accessible to a broader consumer base, particularly appealing to younger generations who prioritize responsible consumption. This shift in consumer values is reshaping the luxury goods sector in Japan, driving strong demand for lab-grown diamonds. A significant milestone in the market’s expansion occurred in September 2024, when Japan’s EDP Corporation acquired Israel-based Lusix for around USD 2.5 million. This strategic acquisition enhances Japan’s domestic production capabilities by leveraging EDP’s expertise in diamond seed manufacturing and Lusix’s established operations. The deal not only boosts innovation but also raises social awareness around sustainable diamond sourcing, further fueling market growth to meet rising consumer demand for ethical and eco-friendly products in Japan.

Lab-grown Diamonds – Overview

Lab-grown diamonds are synthetic diamonds created in controlled laboratory environments that replicate the natural diamond formation process. Unlike mined diamonds, these gems are produced using advanced technologies such as Chemical Vapor Deposition (CVD) or High Pressure High Temperature (HPHT) methods. Lab-grown diamonds possess the same physical, chemical, and optical properties as natural diamonds, making them virtually indistinguishable. They offer an ethical and environmentally friendly alternative to mined diamonds, as their production avoids the social and ecological issues linked to traditional diamond mining. Increasingly popular for their affordability, quality, and sustainability, lab-grown diamonds are widely used in jewelry and industrial applications.

Japan Lab-grown Diamonds Market

Growth Drivers

Surging Demand for Ethically and Sustainably Sourced Materials

Japan Lab-grown Diamonds Market is experiencing robust growth, fueled by the rising demand for ethically sourced and environmentally sustainable alternatives to traditionally mined diamonds. Increasing consumer awareness about the environmental degradation, labor exploitation, and geopolitical conflicts associated with natural diamond mining has led to a shift toward lab-grown diamonds, which offer identical physical and chemical properties without the associated ethical concerns. Companies like Kyocera Corporation have emerged as leaders in this space, promoting transparency and responsible sourcing through initiatives such as the launch of a dedicated website detailing their ethical manufacturing processes and alignment with Sustainable Development Goals (SDGs). Kyocera’s long-standing CRESCENT VERT brand, first introduced with lab-grown emeralds nearly five decades ago, exemplifies the commitment to sustainable innovation. Additionally, the influx of high-quality lab-grown diamonds from Chinese manufacturers—renowned for their advanced HPHT and CVD technologies—has strengthened Japan’s supply of competitively priced, high-clarity gems. Events such as the International Jewelry Tokyo exhibition highlight the increasing visibility and acceptance of lab-grown diamonds among both retailers and consumers. While still capturing a small market share, the segment shows immense potential as Japanese consumers—especially the younger generation—prioritize values such as sustainability, affordability, and ethical consumption, making lab-grown diamonds a transformative force in the country’s luxury jewelry market.

Challenges

Increasing Pricing Pressure

Increasing pricing pressure due to overproduction poses a significant challenge to the growth of Japan’s lab-grown diamonds market. As production volumes rise globally, particularly from countries like China with advanced technologies and high output, the oversupply is driving down prices. This pricing pressure impacts profit margins for domestic producers and creates fierce competition, making it difficult for Japanese companies to sustain premium pricing. Moreover, the commoditization of lab-grown diamonds may dilute their perceived value among consumers, potentially hindering long-term market expansion despite growing ethical and environmental appeal.

Impact of Escalating Geopolitical Tensions on Japan Lab-grown Diamonds Market

Escalating geopolitical tensions can significantly impact the growth of Japan Lab-grown Diamonds Market by disrupting global supply chains and increasing uncertainty in international trade. As Japan imports raw materials and advanced technologies for lab-grown diamond production, any trade restrictions, tariffs, or diplomatic conflicts—particularly involving major producers like China—can hinder production efficiency and raise costs. Additionally, investor confidence and consumer sentiment may be negatively affected during periods of heightened geopolitical instability, leading to reduced spending on luxury goods. Political unrest in sourcing or manufacturing regions may also delay shipments, affecting inventory and sales. These factors collectively pose risks to the market’s steady growth trajectory.

Japan Lab-grown Diamonds Market

Segmental Coverage

Japan Lab-grown Diamonds Market – By Nature of Diamond

Based on nature of diamond, Japan Lab-grown Diamonds Market is bifurcated into colorless and colored segments. The colored segment holds a higher share in Japan Lab-grown Diamonds Market by nature of diamond. It is driven by rising consumer preference for ethical and environmentally sustainable alternatives to mined diamonds. Colored lab-grown diamonds offer a diverse palette through controlled production processes, catering to individual tastes and enhancing personalization. Their affordability compared to natural-colored stones further boosts accessibility and demand. Japanese brands are also expanding their global presence through awareness campaigns and international events. For instance, SHINCA, Japan’s first lab-grown diamond jewelry brand, held a pop-up event in Singapore in November 2024, showcasing vibrant colored diamonds and promoting sustainable luxury.

Japan Lab-grown Diamonds Market – By Manufacturing Methods

Based on manufacturing methods, Japan Lab-grown Diamonds Market is split into Chemical Vapor Deposition and High-Pressure High Temperature segments.

Japan Lab-grown Diamonds Market – By Application

On the basis of application, Japan Lab-grown Diamonds Market is segmented into Electronics & Semiconductor, Automotive, and Jewelry & Fashion segments. The automotive segment holds the highest share in Japan Lab-grown Diamonds Market by application. The dominance is attributed to the exceptional properties of lab-grown diamonds, such as superior hardness and thermal conductivity, making them ideal for cutting tools and precision components in automotive manufacturing. Produced using advanced methods like CVD and HPHT, these diamonds support Japan’s shift toward sustainable industrial practices by reducing reliance on mined resources. Their cost-efficiency and ethical appeal align with growing environmental awareness, while enhancing vehicle performance. As the industry embraces innovative, eco-friendly materials, lab-grown diamonds are poised to play a pivotal role in shaping Japan’s future automotive advancements.

Competitive Landscape

Major players operating in Japan Lab-grown Diamonds Market include PRMAL Inc., LaBrilliante LLC, Apple Green Diamond Inc., EDP Corporation, CarbonLab Co. Ltd, Pure Diamond Co., Ltd, and Mokumeganeya Co., Ltd To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Nature of Diamond

• Colorless

• Colored

By Manufacturing Methods

• Chemical Vapor Deposition

• High Pressure High Temperature

By Application

• Electronics & Semiconductor

• Automotive

• Jewelry & Fashion

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Japan Lab-grown Diamonds Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Drivers
         1. Soaring Ethical & Sustainable Sourcing Demand
         2. Rising Affordability
         3. Increasing Consumer Acceptance & Awareness
      2. Restraints
         1. Increasing Pricing Pressure from Overproduction
         2. Resistance from Traditional Jewelers
      3. Opportunities
         1. Leveraging Omnichannel Retail Strategies
         2. Increasing Geographic Expansion & Product Diversification
      4. Challenges
         1. Navigating the Resale Value Conundrum
         2. Competitive Pressure from Both Natural Diamonds & Other Luxury Goods
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Japan Lab-grown Diamonds Market: Marketing Strategies
5. Japan Lab-grown Diamonds Market: Pricing Analysis
6. Japan Lab-grown Diamonds Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Nature of Diamond
         1. Colorless
         2. Colored
      2. By Manufacturing Methods
         1. Chemical Vapor Deposition
         2. High Pressure high Temperature
      3. By Application
         1. Electronics & Semiconductor
         2. Automotive
         3. Jewelry & Fashion
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Japan Lab-grown Diamonds Market Share Analysis, 2024
      1. Competitive Benchmarking, By Operating Parameters
   3. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Japan Lab-grown Diamonds Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. PRMAL Inc.
   2. LaBrilliante LLC
   3. Apple Green Diamond Inc.
   4. EDP Corporation
   5. CarbonLab Co. Ltd
   6. Pure Diamond Co., Ltd
   7. Mokumeganeya Co., Ltd
   8. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Japan Retail Pharmacy Segmentation                     

Figure 2       Japan Lab-grown Diamonds Market Value Chain Analysis           

Figure 3       Company Market Share Analysis, 2024                  

Figure 4       Japan Lab-grown Diamonds Market Size, By Value (USD Billion), 2019–2031                    

Figure 5       Japan Lab-grown Diamonds Market Share, By Nature of Diamond, By Value, 2019–2031                    

Figure 6       Japan Lab-grown Diamonds Market Share, By Manufacturing Methods, By Value, 2019–2031                                       

Figure 7       Japan Lab-grown Diamonds Market Share, By Application, By Value, 2019–2031

Figure 8       Japan Lab-grown Diamonds Market Share, By Nature of Diamond, By Value, 2019–2031

Figure 9       Japan Lab-grown Diamonds Market Share, By Manufacturing Methods, By Value, 2019–2031

Figure 10     Japan Lab-grown Diamonds Market Share, By Application, By Value, 2019–2031

List of Tables

Table 1         Japan Lab-grown Diamonds Market Size, By Value (USD Billion), 2019–2031

Table 2         Japan Lab-grown Diamonds Market Share, By Nature of Diamond , By Value, 2019–2031                    

Table 3         Japan Lab-grown Diamonds Market Share, By Manufacturing Methods, By Value, 2019–2031                                       

Table 4         Japan Lab-grown Diamonds Market Share, By Application, By Value, 2019–2031

Table 5         Japan Lab-grown Diamonds Market Share, By Nature of Diamond , By Value, 2019–2031

Table 6         Japan Lab-grown Diamonds Market Share, By Application, By Value, 2019–2031

Table 7         PRMAL Inc. Company Overview

Table 8         PRMAL Inc. Financial Overview

Table 9         LaBrilliante LLC Company Overview

Table 10       LaBrilliante LLC Financial Overview

Table 11       Apple Green Diamond Inc. Company Overview

Table 12       Apple Green Diamond Inc. Financial Overview

Table 13       EDP Corporation Company Overview

Table 14       EDP Corporation Financial Overview

Table 15       CarbonLab Co. Ltd Company Overview

Table 16       CarbonLab Co. Ltd Financial Overview

Table 17       Pure Diamond Co., Ltd Company Overview

Table 18       Pure Diamond Co., Ltd Financial Overview

Table 19       Mokumeganeya Co., Ltd Company Overview

Table 20       Mokumeganeya Co., Ltd Financial Overview